For the second quarter 2014, Trinity Bank, N.A. reported Net Income after Taxes of $807,000, an increase of 15.3% over second quarter 2013 earnings of $700,000. Earnings per diluted common share for the second quarter 2014 amounted to $0.71, an increase of 16.4% over second quarter 2013 results of $0.61 per diluted common share.

For the first six months of 2014, Net Income after Taxes was $1,578,000, an increase of 14.0% over the first half of 2013 results of $1,384,000. Earnings per diluted common share for the first half of 2014 were $1.39, an increase of 14.9% over the first half of 2013 results of $1.21 per diluted common share.

President Jeffrey M. Harp stated, "Second quarter results were good due to:

1) Loan volume was up 18% -- there is more economic activity so we are seeing some new opportunities plus more of our existing customers are experiencing increased demand.

2) Net Interest Margin increased from 3.63% for the second quarter of 2013 to 4.05% for the second quarter of 2014.

3) Core operating earnings (income before tax and loan loss provision) are up 17.5% over the second quarter of last year.

4) Operating expense control and asset quality remain excellent.

5) Return on Assets of 1.76% and Return on Equity of 14.36% represent new highs for Trinity Bank.

I think it is also noteworthy to report that Trinity's Return on Equity of 14.36% is calculated based upon a Capital Ratio of 12.38%. There are banks that are earning a higher ROE, but few if any are doing it with 12% Capital."

Actual for Quarter

3 Months

3 Months

(in 000's)

06/30/2014

06/30/2013

%

Net Interest Income

$

1,663

$

1,483

12.1

%

Non-Interest Income

121

113

7.1

%

Non-Interest Expense

(785

)

(746

)

5.2

%

Pretax Preprovision Income

999

850

17.5

%

Gains on Sale of Securities and Foreclosed Assets

153

113

35.4

%

Loan Loss Provision

(75

)

0

N/M

Pretax Income

1,077

963

11.8

%

Income Tax

(270

)

(263

)

2.7

%

Net Income

$

807

$

700

15.3

%

Diluted Weighted Average Shares

1,136

1,143

Earnings Per Share

.71

.61

16.4

%

Actual for 6 months

6 Months

6 Months

(in 000's)

06/30/2014

06/30/2013

%

Net Interest Income

$

3,276

$

2,913

12.5

%

Non-Interest Income

239

222

7.7

%

Non-Interest Expense

(1,513

)

(1,453

)

4.1

%

Pretax Preprovision Income

2,002

1,682

19.0

%

Gains on Sale of Securities and Foreclosed Assets

258

338

(23.7

%)

Gains on Sale of Foreclosed Assets

24

52

N/M

Loan Loss Provision

(150

)

(172

)

(12.8

%)

Pretax Income

2,134

1,900

12.3

%

Income Tax

(556

)

(516

)

7.8

%

Net Income

$

1,578

$

1,384

14.0

%

Diluted Weighted Average Shares

1,136

1,142

Earnings Per Share

1.39

1.21

14.9

%

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

Quarter Ended

Six Months Ended

June 30

%

June 30

%

EARNINGS SUMMARY

2014

2013

Change

2014

2013

Change

Interest income

$

1,758

$

1,583

11.1

%

$

3,467

$

3,119

11.2

%

Interest expense

95

100

-5.0

%

191

206

-7.3

%

Net Interest Income

1,663

1,483

12.1

%

3,276

2,913

12.5

%

Service charges on deposits

39

41

-4.9

%

81

80

1.3

%

Other income

82

72

13.9

%

158

142

11.3

%

Total Non Interest Income

121

113

7.1

%

239

222

7.7

%

Salaries and benefits expense

377

365

3.3

%

754

738

2.2

%

Occupancy and equipment expense

69

77

-10.4

%

141

158

-10.8

%

Other expense

339

304

11.5

%

618

557

11.0

%

Total Non Interest Expense

785

746

5.2

%

1,513

1,453

4.1

%

Pretax pre-provision income

999

850

17.5

%

2,002

1,682

19.0

%

Gain on sale of securities

153

113

35.4

%

258

338

-23.7

%

Gain on sale of foreclosed assets

0

0

N/M

24

52

N/M

Provision for Loan Losses

75

0

N/M

150

172

-12.8

%

Earnings before income taxes

1,077

963

11.8

%

2,134

1,900

12.3

%

Provision for income taxes

270

263

2.7

%

556

516

7.8

%

Net Earnings

$

807

$

700

15.3

%

$

1,578

$

1,384

14.0

%

Basic earnings per share

0.72

0.62

16.1

%

1.40

1.22

14.8

%

Basic weighted average shares outstanding

1,125

1,132

1,125

1,131

Diluted earnings per share

0.71

0.61

16.4

%

1.39

1.21

14.9

%

Diluted weighted average shares outstanding

1,136

1,143

1,136

1,142

Average for Quarter

Average for Six Months

June 30

%

June 30

%

BALANCE SHEET SUMMARY

2014

2013

Change

2014

2013

Change

Total loans

$

107,290

$

91,227

17.6

%

$

106,021

$

89,808

18.1

%

Total short term investments

12,010

15,843

-24.2

%

11,256

20,553

-45.2

%

Total investment securities

59,408

66,379

-10.5

%

59,986

65,677

-8.7

%

Earning assets

178,708

173,449

3.0

%

177,263

176,038

0.7

%

Total assets

183,720

179,392

2.4

%

182,113

182,273

-0.1

%

Noninterest bearing deposits

47,495

38,087

24.7

%

46,219

37,400

23.6

%

Interest bearing deposits

112,580

119,269

-5.6

%

112,642

122,799

-8.3

%

Total deposits

160,075

157,356

1.7

%

158,861

160,199

-0.8

%

Fed Funds Purchased and Repurchase Agreements

429

229

87.3

%

436

386

13.0

%

Shareholders' equity

$

22,746

$

21,281

6.9

%

$

22,451

$

21,135

6.2

%

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

Average for Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

BALANCE SHEET SUMMARY

2014

2014

2013

2013

2013

Total loans

$

107,290

$

104,737

$

100,220

$

94,567

$

91,227

Total short term investments

12,010

10,122

12,966

14,693

15,843

Total investment securities

59,408

60,942

63,937

65,064

66,379

Earning assets

178,708

175,801

177,123

174,324

173,449

Total assets

183,720

180,487

181,884

179,452

179,392

Noninterest bearing deposits

47,495

42,918

43,454

42,308

38,087

Interest bearing deposits

112,580

114,715

116,510

116,055

119,269

Total deposits

160,075

157,633

159,964

158,363

157,356

Fed Funds Purchased and Repurchase Agreements

429

442

267

229

229

Shareholders' equity

$

22,746

$

22,154

$

21,301

$

20,548

$

21,281

Quarter Ended

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

HISTORICAL EARNINGS SUMMARY

2014

2014

2013

2013

2013

Interest income

$

1,758

$

1,709

$

1,677

$

1,616

$

1,583

Interest expense

95

96

100

98

100

Net Interest Income

1,663

1,613

1,577

1,518

1,483

Service charges on deposits

39

42

43

43

41

Other income

82

76

66

67

72

Total Non Interest Income

121

118

109

110

113

Salaries and benefits expense

377

377

478

385

365

Occupancy and equipment expense

69

72

73

75

77

Other expense

339

279

135

177

304

Total Non Interest Expense

785

728

686

637

746

Pretax pre-provision income

999

1,003

1,000

991

850

Gain on sale of securities

153

105

51

21

113

Gain on sale of foreclosed assets

0

24

0

0

0

Gain on sale of assets

0

0

18

0

0

Provision for Loan Losses

75

75

50

20

0

Earnings before income taxes

1,077

1,057

1,019

992

963

Provision for income taxes

270

286

263

271

263

Net Earnings

$

807

$

771

$

756

$

721

$

700

Diluted earnings per share

$

0.71

$

0.68

$

0.66

$

0.63

$

0.61

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

Ending Balance

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

HISTORICAL BALANCE SHEET

2014

2014

2013

2013

2013

Total loans

$

108,648

$

103,762

$

109,505

$

93,934

$

94,432

Total short term investments

11,507

19,981

2,534

18,404

7,895

Total investment securities

58,067

59,669

63,495

63,966

67,506

Total earning assets

178,222

183,412

175,534

176,304

169,833

Allowance for loan losses

(1,371

)

(1,396

)

(1,321

)

(1,271

)

(1,249

)

Premises and equipment

1,281

1,306

1,275

1,232

1,264

Other Assets

6,446

5,590

6,444

7,175

4,885

Total assets

184,578

188,912

181,932

183,440

174,733

Noninterest bearing deposits

50,548

46,896

45,813

44,398

37,823

Interest bearing deposits

110,131

118,861

113,839

117,411

115,922

Total deposits

160,679

165,757

159,652

161,809

153,745

Fed Funds Purchased and Repurchase Agreements

429

429

429

229

229

Other Liabilities

403

587

670

590

277

Total liabilities

161,511

166,773

160,751

162,628

154,251

Shareholders' Equity Actual

22,835

22,054

21,844

21,052

20,656

Unrealized Gain - AFS

231

85

(233

)

(240

)

(174

)

Total Equity

$

23,066

$

22,139

$

21,611

$

20,812

$

20,482

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

NONPERFORMING ASSETS

2014

2014

2013

2013

2013

Nonaccrual loans

$

0

$

402

$

402

$

402

$

429

Restructured loans

$

0

$

0

$

0

$

0

$

0

Other real estate & foreclosed assets

$

300

$

0

$

0

$

0

$

0

Accruing loans past due 90 days or more

$

0

$

0

$

0

$

0

$

0

Total nonperforming assets

$

300

$

402

$

402

$

402

$

429

Accruing loans past due 30-89 days

$

0

$

0

$

0

$

0

$

1,097

Total nonperforming assets as a percentage

of loans and foreclosed assets

0.28

%

0.39

%

0.39

%

0.37

%

0.45

%

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

ALLOWANCE FOR LOAN LOSSES

2014

2014

2013

2013

2013

Balance at beginning of period

$

1,396

$

1,321

$

1,271

$

1,249

$

1,245

Loans charged off

102

0

0

0

0

Loan recoveries

2

0

0

2

4

Net (charge-offs) recoveries

(100

)

0

0

2

4

Provision for loan losses

75

75

50

20

0

Balance at end of period

$

1,371

$

1,396

$

1,321

$

1,271

$

1,249

Allowance for loan losses as a percentage of total loans

1.26

%

1.35

%

1.27

%

1.16

%

1.32

%

Allowance for loan losses as a percentage of nonperforming loans

N/A

347

%

329

%

316

%

310.70

%

Net charge-offs (recoveries) as a percentage of average loans

N/A

N/A

N/A

N/A

N/A

Provision for loan losses as a percentage of average loans

0.07

%

0.07

%

0.05

%

0.02

%

N/A

Quarter Ending

June 30,

March 31,

Dec 31,

Sept. 30,

June 30,

SELECTED RATIOS

2014

2014

2013

2013

2013

Return on average assets (annualized)

1.76

%

1.71

%

1.66

%

1.61

%

1.56

%

Return on average equity (annualized)

14.19

%

13.92

%

14.20

%

14.04

%

13.16

%

Return on average equity (excluding unrealized gain on investments)

14.36

%

13.95

%

14.10

%

13.74

%

13.76

%

Average shareholders' equity to average assets

12.38

%

12.27

%

11.71

%

11.45

%

11.86

%

Yield on earning assets (tax equivalent)

4.26

%

4.14

%

4.00

%

3.92

%

3.86

%

Cost of interest bearing funds

0.34

%

0.33

%

0.34

%

0.34

%

0.34

%

Net interest margin (tax equivalent)

4.05

%

3.92

%

3.78

%

3.69

%

3.63

%

Efficiency ratio (tax equivalent)

40.7

%

39.5

%

38.5

%

36.9

%

44.1

%

End of period book value per common share

$

20.50

$

19.68

$

19.09

$

18.40

$

18.09

End of period book value (excluding unrealized gain on investments)

$

20.30

$

19.60

$

19.30

$

18.61

$

18.25

End of period common shares outstanding (in 000's)

1,125

1,125

1,132

1,131

1,132

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

3 Months Ending

June 30, 2014

June 30, 2013

Tax

Tax

Average

Equivalent

Average

Equivalent

YIELD ANALYSIS

Balance

Interest

Yield

Yield

Balance

Interest

Yield

Yield

Interest Earning Assets:

Short term investment

$

12,010

18

0.60

%

0.60

%

$

15,843

21

0.53

%

0.53

%

Investment securities

4,562

41

3.59

%

3.59

%

24,115

193

3.20

%

3.20

%

Tax Free securities

54,846

327

2.38

%

3.44

%

42,264

209

1.98

%

2.85

%

Loans

107,290

1,372

5.12

%

5.12

%

91,227

1,160

5.09

%

5.09

%

Total Interest Earning Assets

178,708

1,758

3.93

%

4.26

%

173,449

1,583

3.65

%

3.86

%

Noninterest Earning Assets:

Cash and due from banks

3,516

3,358

Other assets

2,843

3,883

Allowance for loan losses

(1,347

)

(1,247

)

Total Noninterest Earning Assets

5,012

5,994

Total Assets

$

183,720

$

179,443

Interest Bearing Liabilities:

Transaction and Money Market accounts

87,464

59

0.27

%

0.27

%

94,633

66

0.28

%

0.28

%

Certificates and other time deposits

25,116

36

0.57

%

0.57

%

24,636

34

0.55

%

0.55

%

Other borrowings

429

0

0.25

%

0.25

%

229

0

0.25

%

0.25

%

Total Interest Bearing Liabilities

113,009

95

0.34

%

0.34

%

119,498

100

0.34

%

0.34

%

Noninterest Bearing Liabilities

Demand deposits

47,495

38,087

Other liabilities

470

526

Shareholders' Equity

22,746

21,281

Total Liabilities and Shareholders Equity

$

183,720

$

179,392

Net Interest Income and Spread

1,663

3.59

%

3.92

%

1,483

3.32

%

3.53

%

Net Interest Margin

3.72

%

4.05

%

3.42

%

3.63

%

TRINITY BANK N.A.

(Unaudited)

(Dollars in thousands, except per share data)

June 30

June 30

2014

%

2013

%

LOAN PORTFOLIO

Commercial and industrial

$

58,814

54.13

%

$

51,813

54.87

%

Real estate:

Commercial

18,412

16.95

%

15,562

16.48

%

Residential

21,075

19.40

%

17,096

18.11

%

Construction and development

7,873

7.25

%

7,487

7.93

%

Consumer

2,473

2.28

%

2,466

2.61

%

Total loans (gross)

108,647

100.00

%

94,424

100.00

%

Unearned discounts

0

0.00

%

0

0.00

%

Total loans (net)

$

108,647

100.00

%

$

94,424

100.00

%

June 30

June 30

2014

2013

REGULATORY CAPITAL DATA

Tier 1 Capital

$

22,835

$

20,656

Total Capital (Tier 1 + Tier 2)

$

24,206

$

21,905

Total Risk-Adjusted Assets

$

115,772

$

123,388

Tier 1 Risk-Based Capital Ratio

19.72

%

16.74

%

Total Risk-Based Capital Ratio

20.91

%

17.75

%

Tier 1 Leverage Ratio

12.43

%

11.51

%

OTHER DATA

Full Time Equivalent Employees (FTE's)

15

14

Stock Price Range

(For the Three Months Ended):

High

$

38.00

$

36.50

Low

$

37.50

$

32.50

Close

$

38.00

$

32.50

Trinity Bank, N.A. is a commercial bank that began operations May 28, 2003. For a full financial statement, visit Trinity Bank's website: www.trinitybk.com Regulatory reporting format is also available at www.fdic.gov.

This Press Release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding future financial conditions, results of operations and the Bank's business operations. Such forward-looking statements involve risks, uncertainties and assumptions, including, but not limited to, monetary policy and general economic conditions in Texas and the greater Dallas-Fort Worth metropolitan area, the risks of changes in interest rates on the level and composition of deposits, loan demand and the values of loan collateral, securities and interest rate protection agreements, the actions of competitors and customers, the success of the Bank in implementing its strategic plan, the failure of the assumptions underlying the reserves for loan losses and the estimations of values of collateral and various financial assets and liabilities, that the costs of technological changes are more difficult or expensive than anticipated, the effects of regulatory restrictions imposed on banks generally, any changes in fiscal, monetary or regulatory policies and other uncertainties as discussed in the Bank's Registration Statement on Form SB-1 filed with the Office of the Comptroller of the Currency. Should one or more of these risks or uncertainties materialize, or should these underlying assumptions prove incorrect, actual outcomes may vary materially from outcomes expected or anticipated by the Bank. A forward-looking statement may include a statement of the assumptions or bases underlying the forward-looking statement. The Bank believes it has chosen these assumptions or bases in good faith and that they are reasonable. However, the Bank cautions you that assumptions or bases almost always vary from actual results, and the differences between assumptions or bases and actual results can be material. The Bank undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless the securities laws require the Bank to do so.